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November 18, 2010

Fringe Benefit-A Motivational Tool for Employee Performance

Fringe Benefit-A
Motivational Tool for Employee Performance

Introduction

In order to achieve the new
objectives of the work organizations, changes and reformulations must take
place; thus, resulting to the transition of both human resource management and
industrial relations. Primarily, these changes can be attributed to the
emergence of globalization. Industrial relations practices for instance, had
changed so as to increased collective bargaining at the enterprise point,
flexibility in relation to areas of employment as well as with regards to
working time and job functions. The change in industrial relations had been
encouraged due to the increasing global competition, rapid development in
products and systems as well as the emphasis on the importance of quality,
productivity and skills of the employees (Kuster, 1994).

In the same way that these
factors had caused an impact to industrial relations, human resource management
policies and practices were also affected. Employees have to be involved so as
to overcome the changes and increasing competition. Organizations should then
ensure that their laborers are equipped with the necessary skills for the
creation and development of goods and the provision of services that the global
market will accept. Human resource management now manages the workforce in a way
that will motivate the employees to be more productive. In order to induce
productivity and quality among the employees, human resource management
incorporates work motivation through training and rewarding their employees. The
realization of the goals and needs of both management and employees and the
significance of fringe benefits had become the top priorities and important
activities of the human resource management.

Statement of the Problem

As Burack, et al (1994)
pointed out, human resource management had transformed itself as more emphasis
is stressed on commitment and control. Quality, competence and flexibility among
the employees had efficiently replaced quantity of task accomplished and dumb
obedience. The payment that each and every individual receive in return for the
work they perform is commonly the major source of their financial condition.
That is why pay or more commonly known as compensation plays a significant role
in the economic and social well-being of a person. Employees see that
compensation is a return in exchange between their employer and themselves, as
an entitlement for being an employee of the company or even as a reward for a
job that was done well (Sims, 2002).

In the case of various
business organizations, it had been able to focus on its human resource. The
company focus on the demands and needs of their employees and it can be seen in
the overall performance of the employees. The company had been able to offer the
employees different packages that focus not only on compensation but also to
fringe benefits such as money, services as well as other in-kind payments. The
said aspect, and can be explained by focusing on the different motivational
theories, primarily the theory of hierarchical needs, where in financial safety
is considered as one of the most important motivator of an individual. As we all
know, motivation is the one that pushes an individual to perform at his or best,
thus in the case of the employees of the company, it had helped them to work
hard, therefore, it helped them to become productive. The said situation created
a domino effect, meaning if each and every employee is productive, it will
reflect on the overall performance of the company in terms of sales and services
towards the customers.

Research Questions

Generally, the purpose of this study is to conduct a study on the fringe
benefits of business and identify the perception of the employees. This study
tries to answer the following queries:

1.What are the employees’ perceptions regarding the fringe benefits in
their respective companies?

2.What are the variables that significantly affect the perception of the
employees regarding fringe benefits?

3.What are the advantages and disadvantages of employing a fringe benefits
program in businesses?

4.Is there any significant difference between the perception of the
respondents regarding fringe benefits and company development?

Scope and Limitations

The study intends to
investigate the level of effectiveness of the employee fringe benefits programs
in most businesses. For this study, primary research and secondary research will
be used. Primary research will be conducted using anonymous questionnaires that
will be sent to selected employees of certain businesses. The questionnaires
will be used to collect quantitative data and the interviews will be used to
provide qualitative insights into the data collected.

The data will be analysed
and compiled for the correlation of the hypothesis. The data will then be
presented by means of graphical representations and illustration and the
difference would be highlighted. A negative correlation between the variables
would suggest that the hypothesis is null, that is, the level of effectiveness
of training programs significantly affects the general efficiency of the
organisation.

Methods

Research requires an
organised data gathering in order to pinpoint the research philosophies and
theories that will be included in the research, the methodology of the research
and the instruments of data interpretation. In this study, the Research Process
“Onion” will be utilised so that the findings of the study can be thoroughly
established. The inner part of the onion describes the methodology portion
whereas the outer part discusses the strategies that can be utilised in
interpreting the results of the findings.

The descriptive research
method uses observation and surveys. In this method, it is possible that the
study would be cheap and quick. It could also suggest unanticipated hypotheses.
Nonetheless, it would be very hard to rule out alternative explanations and
especially infer causations. Thus, this study will use the descriptive approach.
This descriptive type of research will utilise observations in the study.